Esports Entertainment Group to Delist from Nasdaq in Cost-Cutting Move
Esports Entertainment Group, Inc. (NASDAQ: GMBL), a major player in the iGaming and esports content space, has made the strategic decision to voluntarily delist from the Nasdaq Stock Market. The move comes as part of the company’s broader efforts to streamline costs and focus on driving growth and profitability.
The board of Esports Entertainment Group has given the green light for the delisting of its securities, which includes common stock and common warrants. The company plans to make the transition to the OTCQB Venture Market. This decision was influenced by the fact that Esports Entertainment Group was not in compliance with Nasdaq’s stockholders’ equity requirement and was being monitored by a Nasdaq Panel.
“While the company possesses solid assets and boasts top-tier management, the expenses associated with maintaining a Nasdaq listing were substantial and did not accurately reflect the company’s intrinsic value,” explained CEO Alex Igelman.
To formalize the delisting process, Esports Entertainment Group expects to file a Form 25 with the Securities and Exchange Commission. The company views the shift to the OTCQB as a temporary measure and anticipates the possibility of relisting on a senior U.S. Exchange in the future once it satisfies the necessary listing requirements.
Esports Entertainment Group is widely recognized for its operation of a cutting-edge esports venue management system, which is currently deployed in over 1000 locations worldwide, including esteemed colleges and universities. Furthermore, the company offers B2C wagering services through its suite of brands, possessing licenses from the MGA (Malta Gaming Authority). As the esports and esports wagering markets continue to thrive, Esports Entertainment Group aims to capitalize on their robust growth potential.
Analyst comment
Positive news: Esports Entertainment Group’s decision to delist from Nasdaq in a cost-cutting move is seen as a positive step towards streamlining costs and focusing on driving growth and profitability. The company plans to transition to the OTCQB Venture Market temporarily and aims to relist on a senior U.S. Exchange in the future. This decision allows the company to better align its value and expenses while still capitalizing on the thriving esports and esports wagering markets.
